1. Field of the Invention
This invention relates generally to the field of retail coupon redemption utilizing a so-called "smart" card without the necessity of employing paper coupons.
2. Prior Art
Current food industry practice in the promotion of brand name products generally falls into two categories: new product introduction for creating a demand for a particular product; and existing product promotion for the purpose of retaining or expanding current market share of a particular product. The standard method of promotion used to effectuate these purposes is to provide coupon offerings as price discount inducements to initially try or repurchase a particular product. Currently, the results of these efforts are not cost-effective or easily managed.
Historically, a manufacturer or a retailer would produce a relatively large number of coupons, i.e. in the range of 20 to 50 million, and distribute these coupons to the public. Typically, these coupons would be printed in local or national publications, distributed to customers, mailed directly to potential customers or printed on the packaging of a product which is sold, all to induce the purchasing of this product by the consumer. Furthermore, once the coupon is redeemed by the customer at a retail center, such as a supermarket, the coupons are sent to a clearing house for redemption. If indeed 50 million coupons are printed, the approximate cost of producing and redeeming these coupons would be approximately $250,000.
While many customers are inclined to utilize these coupons, due to the increasingly high costs of food and household items, the process of clipping and saving these coupons tends to be time-consuming and cumbersome. Furthermore, once these coupons are retained by the customer, the customer must remember to bring these coupons to the store for redemption. Often times, the customer will not bring his or her coupons when "running into the store" to make a quick purchase. Additionally, once the customer makes his or her purchases, the coupons associated with these purchases must be located among the coupons which the customer is not utilizing, the expiration dates of these coupons must be checked, and the coupons must then be given to the store clerk for scanning or otherwise entering the items into the store's computer. Once the store accumulates a number of coupons, they must then be sent to a redemption center, which in turn informs the various manufacturers of particular coupon usage.
It is not suggested that, due to the tedious nature of this process discount coupons be eliminated, particularly since, due to the high cost of various products, such as breakfast cereals, the manufacturers would expect that customers would utilize discount coupons to make these products more affordable. Rather, it is suggested that a different system should be developed in which discounts can be applied to various products in a more economical and efficacious process.
Recently, a number of systems have been developed which address this problem of coupon redemption. For Example, U.S. Pat. No. 5,185,695, issued to Pruchnicki, describes a method and apparatus for creating and processing discount coupons without the necessity of having the coupons printed, distributed and then redeemed at the checkout counter. A master list is compiled which is then transmitted to the local retailers who sell the products which are the subject of the coupons. Coupon indicia is printed and then displayed adjacent to the particular product. When a customer purchases each product subject to the discounted coupon, the amount of the discount would be automatically deducted from the purchases price. While this system does eliminate the use of coupons, it does not engender itself to the situation in which a manufacturer wishes to induce a customer to repurchase a product by offering increasing discounts based upon previous purchases of that product.
Another approach to the problem of coupon redemption is illustrated in U.S. Pat. No. 4,882,675, issued to Nichtberger et al. This patent describes a paperless system for distributing, redeeming and clearing merchandise coupons. Each customer receives a card insertable into a local station which electronically displays each coupon which can be redeemed. The customer then selects the coupons he wishes to redeem, which are then entered onto his card. When the customer makes his purchases and presents the card to an automated local coupon distribution and redemption (CDR) unit, the CDR will compare the items purchased with the selected coupons on the customer's card, and then make the appropriate reductions in price. Unfortunately, the card which is utilized employs a magnetic strip memory device, thereby limiting the information which is programmed thereon. Furthermore, the card which is utilized in this system is redeemed at the checkout counter and not retained by the customer.
U.S. Pat. No. 5,192,854, issued to Counts, illustrates a system for electronically recording and redeeming coupons in which bonus points are offered by a manufacturer for buying specified products. Although this patent does address the situation in which bonuses are given to a customer for purchasing a particular product, the system employs paper coupons, meaning that these coupon must be redeemed.
U.S. Pat. No. 5,047,614, issued to Bianco, shows a system or a method and apparatus for computer-aided shopping in which a "smart" card is employed. However, this patent does not address itself to the problems described hereinabove relating to the paperless redemption of coupons.